The Polish Bank and Enterprise Restructuring Programme: Debt / Equity Swaps. Survey Results

CERT Discussion Paper DP97/14

Posted: 27 Apr 1998

See all articles by Marek Belka

Marek Belka

Polish Academy of Sciences

Anna Krajewska

University of Lodz - Institute of Economics

Abstract

This paper provides a detailed analysis of the Polish Bank Conciliation Agreement (BCA) and relations between state owned enterprises and banks during transition. The study is conducted from the perspective of the enterprises implementing BCAs with debt /equity swaps and regular BCAs using data from surveys conducted by the authors during 1994 to 1995. Results of the analysis suggest that bank conciliation agreements did not protect creditors and sometimes supported bad firms at the cost of good ones. However, there are also positive aspects of the restructuring programme including: the improved supervision and control of the banks and creditors over enterprises, banks being mobilised to restructure their bad debt portfolios which provided an impulse for the internal modernisation of bank structures. The BCA also encouraged the emergence of investment banking dealing both with equity investments and co-participation in the management of privatised firms.

JEL Classification: G21, G28, O16, P34

Suggested Citation

Belka, Marek and Krajewska, Anna, The Polish Bank and Enterprise Restructuring Programme: Debt / Equity Swaps. Survey Results. CERT Discussion Paper DP97/14, Available at SSRN: https://ssrn.com/abstract=65137

Marek Belka

Polish Academy of Sciences

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Anna Krajewska (Contact Author)

University of Lodz - Institute of Economics

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Poland
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